Jeff Michael: Repair Your Credit and Knock Out Your Debt
I highly recommend this book because I wrote it.
Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds
I have about a dozen entries in this book.
« August 2005 | Main | October 2005 »
Update: I got the html wrong on this post, so I'm updating it.
The US DOJ has posted info on the means testing requirements of the new Bankruptcy Law here.
There are also links to the current median incomes for each state (anyone who earns less than that median income will not be hindered in filing chapter 7 bankruptcy).
I've been out of town for almost a week, so I have some catching up to do...
The ABA has released a survey that indicates more Americans than ever are behind on their credit card payments. (4.81 percent)
The worst news in the story was that personal savings rates were in the negative last quarter. I scream about saving until I'm hoarse, but the message doesn't seem to get through. Saving is the key to all of this. It's the key to beating debt, surviving a natural disaster, avoiding bankrkuptcy, whatever.
Yeah, half of you believe the economy's a wreck and that people just don't have any money left over to save at the end of the month. The numbers just don't bear out that assertion. I just don't buy it; people in our society live beyond their means and buy things they don't need. That, more than consumers being squeezed by the economy or higher gas prices, results in low savings rates and late credit card payments.
The ABA is blaming gas prices for the record number of delinquent payments last quarter. I don't buy that either. Increased minimum monthly payments are to blame. That means the struggling should be short-term for cash-strapped consumers.
Missouri's schools may begin offering a personal finance course, if the State Board of Education approves the plan on Oct. 6th. (link)
They're expected to do so, which will make the class mandatory for students beginning with the class of 2010. Of course this is a good thing on a lot of levels; schoolkids certainly aren't learning personal finance anywhere else. But in another sense, I see this as more erosion of parental responsibility; now schools will teach your kids even more things that you should be teaching them. What's next? Schools teaching your kids what political views they should have (this is already going on in lots of places, I bet) or what religious views they should have. I know personal finance isn't the same thing, but I hope all you parents out there know what you're getting yourselves into by letting the schools do more and more of your parenting for you.
Ultimately, this is a good move and should improve financial literacy and help future generations avoid problems with debt; I just think it's costing us a lot. And I don't mean $$$.
I've been sidelined by illness over the past week or so, so I haven't updating as regularly. This morning, I checked out my favorite credit counseling agency's web site (Springboard) and saw that they have been approved by the EOUST to provide credit counseling in compliance with the new bankruptcy code. Grats to them!
AICCCA President David Jones has called EOUST approval a "critical stamp of approval" for counseling agencies, and the American Bankruptcy Insititute said
Because the credit counseling industry is under great scrutiny by the Internal Revenue Service, Federal Trade Commission, Congress and state regulatory bodies, it is expected that the U.S. Trustee will carefully select those on the approved list of providers. This is especially true for the initial list of approved providers.
Many BAPCPA opponents have criticized the counseling requirement of the new law because it handed consumers over to an unregulated industry that had been rife with abuse. Clearly, with the first three approved national agencies, we see that there are no profiteers, and clearly the EOUST has done a good job of selecting agencies with integrity. I think they'll continue to do so. Looking at the list of approved counseling agencies, I'm familiar with some of the agencies approved in specific local districs, like CCCS-SWMO, whom I know to be a top-notch counseling agency that truly has the cosumer's best interests at heart. Grats to them, too.
This is all good news for people who will be seeking counseling in anticipation of filing bankruptcy.
Bizzyblog has this post, updated today, about the abuse of debit cards being handed out to hurricane victims.
This is another reason to consider giving to Habitat for Humanity or Samaritan's Purse. There you know how the money will be handled, and it won't be simply given to evacuees and fraudsters who will take it straight to a strip club. Sad that we have to worry about that sort of thing, but we do.
Target's credit card division and American Express have both announced more concessions for victims of hurricane Katrina. This article about Target's NASCAR team actually provided more information than I could quickly find anywhere else.
American Express is waiving penalties effective August 28th; they haven't decided yet how long that policy will last.
Lots of people automatically assume corporations are evil, greedy, and unrepentantly aloof to the plight of those in need. In reality, they want to see their customers succeed, and they're willing to meet in the middle to help, especially in the wake of a disaster like Hurricane Katrina.
Sure, there are creditors who behave badly, and I blog about their foul deeds here whenever I can. But they also deserve credit when they do the right thing. Target and Amex have joined that list.
The House will not reopen the bankruptcy reform law to exempt hurricane Katrina victims, according to Reuters.
For the record, I agree with the decision not to change the bankruptcy reform schedule in response to the Hurricane. I've gotten some flack for it, too, but I think this is another purely political argument. People who opposed the bankruptcy law want to do whatever they can to derail it, including using the tragedy surrounding hurricane Katrina. People who supported the law know that it won't prevent Katrina victims from filing Chapter 7 bankruptcy if they need it. No one's mind has changed since the bankruptcy bill was initially debated.
As if the hurricane wasn't a horrible enough thing for its victims to contend with, here comes this story out of my home state: at least 10 hurricane relief web sites were found to be linked to a white supremacist group. Missouri's Attorney General got the sites shut down before any money was collected.
Here's something good to balance out that awful bit of news; Samaritan's Purse is collecting donations for hurricane victims that will be focused on repairing the homes damaged by Katrina. If you saw my post earlier about Network for Good's Hurricane resources page, you'll see that you have lots of options for giving that will allow you to know more precisely what is being done with your contribution. Personally, I've just donated to the Red Cross and Salvation Army so far; I'll let them decide where my contribution would help the most. But I'm going to give through Samaritan's Purse, too. A lot of my friends have said they are going to keep giving after each payday, and if that's your plan, consider spreading your contribution around the different relief agencies out there like Samaritan's Purse, Habitat for Humanity, etc.
Freddie Mac is really going to bat for Katrina victims, urging mortgage lenders to return September mortgage payments and extend forbearance to a year.
It looks like maybe some of the lenders may only return the payments if the homeowner requests it. So if you know anyone whose home was affected, let them know they should be able to contact their lender and request that September's mortgage payment be returned.
Here's a link to the Baltimore Sun's coverage of the story.
Right here in my backyard... 165,000 student loan borrowers were notified that their SSNs, last names, and residences were lost in transit. ( Link.)
Now this kind of thing seems to be happening more and more, but I wonder if it hasn't been happening all along, and we're only now finding out about it more.
Of course, the increased reliance on computers and consolidation of borrowers under fewer lenders (e.g., BofA buying MBNA) may also contribute to this increased problem. First thing first, we need credit freezes. Now. Then they need to do something about these security lapses.
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